NEW YORK — Venture capitalists invested more money in more U.S. startups in the third quarter than they did a year earlier — especially in the software industry.
Compared with the previous quarter, however, there were declines in both the amount of money invested and the number of deals made.
This suggests that investors may be getting more cautious about the economy and the volatile stock market, which has caused many companies to hold off on going public — when many venture capitalists get their payoff.
According to a study out today, startup investments rose 31 percent in the July-September period, to $6.95 billion from $5.31 billion a year earlier.
Compared with the second quarter of this year, venture capital investments declined 12 percent from $7.88 billion.
The money in the latest quarter was split among 876 startups — up 3 percent from last year, but down 14 percent from the second quarter.
The study is conducted each quarter by the National Venture Capital Association and PricewaterhouseCoopers and is based on data from Thomson Reuters.
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